Re: Credit score impact[ Edited ]
01-29-2013 09:59 AM - edited 01-29-2013 10:04 AM
To put it simply, if you're just trying to get to a 640 score, pay down the revolving utilization and you're going to get more than 10 points easily. Ideally pay it down more than what you suggest, but as you state it may take some time. I'd talk to your LO as well, if you have extra cash it may be worth it here if you don't get qualified otherwise.
To some of the other points:
It's always worthwhile trying to get derogatory information removed. Always. One 30 day late from 2+ years ago isn't major; however, it could be worth a few points and is worth chasing when your mid-score is on the bubble.
The current lease being paid in full will have little to no bearing on your FICO score. May see a slight difference in either direction, but the balances aren't calculated like revolving utilization.
I'd add the AU absolutely; she'll inherit your old history and that's a huge change to her utilization. That again might be the entire ballgame right there; it may not help with underwriting but it can certainly help the score in this situation assuming there's no negative marks on the account. AU's are rather free scorewise to add in most cases (Amex is an exception), aged tradeline and no inquiry penalty. AAoA it may help if the tradeline is older than her current average, but that's near irrelevant compared to the additional CL in her situation.
Scores from a single new tradeline often recover in about six months; however, that's a YMMV type thing and there's really no predicting it because of a few factors, but it's a reasonable estimate anecdotally.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 660, Wally TU 697, EX unknown (05/13/13)
Goal Score: 680 in all three (01/01/14)
Take the FICO Fitness Challenge